3 Important Expenses You Are Not Saving For

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We have been advocating over and over again the importance of savings and making this one a habit. There is always that sense of fulfilment whenever we can be able to pay ourselves first every pay day. It also feels good knowing that your savings have ballooned over the past few months. Every trip to the bank would be full of glee as you check your passbook increasing in digits.

Then suddenly something unexpected happened. Abruptly there’s a need to spend which would literally eat up the bulk of your savings. But you have no choice. You just close your eyes and see your savings disappear. Then you will be back in square one.

We all have been in this kind of situation many times. I have experienced this before too. Some might even end up giving up on savings because of these expenses that can negate their savings close to zero.

The key here is to know that there are irregular expenses that are considered huge that can greatly dent our bank account. After all, these are irregular expenses and some are even unexpected. Some are considered occasional. And when they do occur, you would be scraping your savings down to the last centavo.

Hence, it would be important to know these important expenses that you might not have saved up for ‘yet’.

Education Expenses

June is already here. And that means school! Yet, going to school nowadays is no easy feat. And in fact costly. Even if your kids are studying in public schools, you need to buy notebooks, pens, crayons and a whole lot more. Teachers even demand separate notebooks per subject. Plus you also need to get a uniform. Not just one but minimum of two. Your kids would also need baon every day. This expense could balloon especially if your kids are in the private school. Expect the downpayment to be costly. How much more the yearly tuition and matriculation.

Medical Expenses

When we got hospitalized or someone in the family is sick, we always see to it that they will have the best treatment. And when we say the best this could mean spending more. Going to the hospital is not a spare change. How much more if a family member is ill and a lot of medicines are needed. Rooms in the hospital cost thousands of pesos per day. Doctor’s professional fees are no joke at all. Good for you if they decide to waive it. If they did, you will end up buying possible prescription and even over the counter medications. You might say your company’s got your medical expenses. Yet, there’s always that gap. Some funds do not fully cover the expenses. There might even be some services that are not part of the coverage. That is why it pays to be prepared.

Occasion Expenses 

We love celebrating occasions. And whenever we do, we spend a lot. Good examples of celebrations we tend to overspend are Christmas, birthdays, anniversaries, weddings, fiesta, and a whole lot more. We go overboard with our expenses. That is why having a sinking fund for these occasions is ideal. It would be difficult for you to spend your 13th month pay or Christmas bonus just to buy gifts or food for Noche Buena. What about New Year’s Eve feast? What will you spend then for the next year? As early as now, set aside specific amounts each payday. So with whatever occasion that might come your way, you will be ready for that big day.

These expenses might be things we overlook whenever we save. After all, we got other motives and purposes of such savings. That is why, it is best to have separate accounts for different expenses such as the ones above. If we don’t save for these we might end up getting into debt because our savings are not enough in the first place. How much more if these expenses occur at the same time. Ouch! More ouch! Create your own savings strategy and save the money in advance.

P.S To those doing the 52 Week Money Challenge, it is Week 21 already! Did you deposit the next amount yet?

P.P.S Want to know more about investing, savings, stock market and more, check out my reference here. You can download free ebooks and resources too. 

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